Author: Henry ByrneDate: 11/05/2005Words: 416Source:...

Author: Henry Byrne
Date: 11/05/2005
Words: 416
Source: AFR
Publication: The Financial Review
Section: Market Wrap
Page: 19

Australian Renewable Fuels raised $20 million last month in a heavily oversubscribed offering. However, its shares closed on the first day down 4 ? at 96 ?.
Harold Shapiro, managing director of Shaw Stockbroking, which underwrote the ARF float, said the disappointing performance was largely the result of investor caution after recent problems announced by UK biofuels producer Biofuels Corporation in meeting its earnings forecasts.
"The ARF forecasts are more conservative and in the long run it will present an outstanding opportunity," he said.
ARF aims to become Australia's pre-eminent producer of biodiesel fuel, a clean-burning alternative to mineral diesel fuel produced from low-grade tallow such as animal fats and vegetable oils.
The company has two plants under construction in South Australia and Western Australia and estimates that each will have the capacity to produce 44.4 million litres of biodiesel a year when functioning at capacity